Are we going to witness an historical housing price correction amid sharpest rise in unemployment and social tension?...and the minimum you should know in order to protect yourself from this downturn from an economic, stock market and political point of view... with a pinch of humor and sarcasm.

Friday, 9 May 2008

What Is He Afraid of ...

... maybe something they know that we don't? or do they feel a heavy responsability on their shoulder as to avoid the same mistakes commited in the late 80's that brought Finland to an almost economical collapse.

"According to Vanhanen the slowdown in growth in the global economy is starting to be felt in Europe and will in time dampen international pricing pressures."

"But at the same time, there is a danger that that the good development in our employment situation will come under threat."

"The government is keeping a close watch on economic developments and it has both the ability and the readiness to react, if needed, with measures to support economic growth," Vanhanen told a Confederation of Salaried Employees gathering

When hearing as well, in previous speeches, Jyrky "tricky" katainen and co, we have the feeling that they have been preparing for such an event, ready to trigger any government lead response (tax cut, increase in government construction projects, and other strategy taken from the magic hat).

After all, they are quite well prepared to weather any big slowdown. As Mr Trichet, president of the ECB keep repeating, deficit under 3% at the latest by 2010. I suppose 2010, is a time when the economy world wide will be enough mature that a natural slowdown will then be triggered.

After all, as Mr Matti "teddy"Vanhanen once said, "the good times are behind us"; I guess he meant growth without inflation.

The strange thing is that, if an economic slowdown happen, it is at a time when most of the people at a very vulnerable due to the level of debt accumulated. I hope that people are wise enough to keep enough buffer to weather themselves any big economical slowdown and not rely on the state "magic" policies ...